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HomeMy WebLinkAboutA003 - Council Action form dated January 25, 2000 1 ITEM # DATE 01/25/00 COUNCIL ACTION FORM SUBJECT: MOTION DETERMINING THAT THE REQUEST FOR DESIGNATION OF URBAN REVITALIZATION AREA FOR 150 CAMPUS AVENUE DOES NOT MEET THE CRITERIA FOR ELIGIBILITY UNDER THE MULTIPLE FAMILY RESIDENTIAL MATRIX AND TO NOT PROCEED WITH SETTING THE DATE OF PUBLIC HEARING FOR APPROVAL OF REQUEST FOR DESIGNATION OF URBAN REVITALIZATION AREA. ACTION FORM SUMMARY: The City of Ames has received, from the property owner of 150 Campus Avenue, a Request for Designation of Urban Revitalization Area under the Multiple Family Residential Matrix, for a proposed project consisting of a 3 story, 24 unit apartment building. It is the belief of staff that the request does not meet the criteria for eligibility for designation as an Urban Revitalization Area under the Multiple Family Residential Matrix and the request should be denied. A date for Public Hearing should not be set for approval of the Request for Designation of Urban Revitalization Area. BACKGROUND: On August 10, 1999 the City Council approved the Urban Revitalization Program Criteria Matrix for multiple family and commercial properties to be used in the administration of the Urban Revitalization Program on a "case-by-case" basis. On January 7, 2000 the City of Ames received a Request for Designation of Urban Revitalization Area for property located at 150 Campus Avenue. This property has an approved site plan for a 3 story, 24 unit apartment building of wood and masonry construction, with 45 parking spaces being provided to be constructed on 3 lots. Currently there are 3 vacant houses on the property. The action to be taken by the City Council is to determine if the request meets the Criteria for Eligibility under the Urban Revitalization Multiple Family Residential Criteria Matrix. If the City Council determines that it does, then to set a date of Public Hearing for approval of the Request for Designation of Urban Revitalization Area for 150 Campus Avenue. ANALYSIS: The applicants have submitted a Request for Designation of Urban Revitalization Area for 150 Campus Avenue under the Multiple Family Residential Matrix, (See attached request). Staff has determined that the request was complete and the information submitted is correct. The applicant indicates that there are three vacant houses on the premises, which are to be removed and the properties combined to create 150 Campus Avenue. The homes are vacant but have not been removed. The addresses of these homes are 156, 152 and 148 Campus Avenue. The City Assessor's condition rating for the properties are: 148 Campus Avenue 2.5, 152 Campus Avenue 3, and 156 Campus Avenue 3, on a 1 to 5 scale with 1 as very poor and 5 as very good. The City Assessor believes the properties to be in good condition. The estimated cost of the new apartment building is $1,400,000. The total current assessment is $290,300 for all three properties. The total tax revenue for all three properties currently is $13,667.42. The estimated future tax revenue without abatement would be $41,766.47. The following analysis is estimated from the building value estimated by the property owner, and the established land value by the City of Ames. The tax rate is the current tax rate, no change is taken into consideration over a 10 year period on the value of the property and the rate of taxes. The taxes deferred and collected analyzing the three different tax schedules are listed below based on the following valuation: Estimated value: $1,400,000 Tax rate/$1,000 Valuation = $29.83319 Land Value $ 95,000 Total Value $1,495,000 Yearly tax revenue: $35,940.04 Existing Value $ 290,300 Taxable Value $1,204,700 No tax exemption over a ten year period = $359,400.40 Taxes Exempted Per Taxes Paid Over 10-Year Schedule Period 3-Year: $107,820.12 $251,580.28 5-Year $107.820.12 $251,580.28 10Year: $158,136.18 $201,264.22 Required Conditions The Criteria for Eligibility under the Multiple Family Residential Matrix (See attached sheet), mandates that the property must display one of two required conditions before it can be determined that the property is eligible to be considered further. These two threshold conditions are- - A slum and blighted condition, or; 2 An underutilized condition. The applicant has indicated that the site is underutilized in its present condition. For meeting the underutilized portion of the matrix there are three different possibilities: - Properties that are vacant in an in-fill area and were previously developed and have had the principal structure removed. - Properties that are non-conforming with respect to the base zone must be brought into conformance. - Properties that are non-conforming with respect to the flood way fringe must be brought into conformance with applicable flood plain regulations. The applicant's request is based on the second condition, which states: "Properties that are non-conforming with respect to the base zone must be brought into conformance." The applicant indicates that the house at 148 Campus Avenue has been non-conforming because it had 5 units and it is on a 9,826 square foot lot. Under the R-4 zoning designation the property at 148 Campus Avenue is conforming under the current zoning regulations regarding the number of dwelling units on the lot. City of Ames records indicate 2 apartments with 3 bedrooms each and 3 boarding rooms legally registered for 148 Campus Avenue. This use is permitted in a R-4 zoning district. A dwelling unit with 2 apartments and 3 boarding rooms would need to be on lot of a minimum size of 7,000 square feet. 148 Campus Avenue has 9,826 square feet. The parking requirement would be 7 spaces. This requirement is being met as shown by aerial photography of the property used in location maps in the City of Ames offices. The applicant also indicates that the proposed zoning for the three properties on Campus Avenue is to be RH (Residential High Density). It is staffs belief that the applicant's request does not meet the selected optional criteria, which states: "Properties that are non-conforming with respect to the base zone must be brought into conformance". Currently the structures are conforming and will continue to be conforming under the new zoning regulations. Under the RH zoning designation, preexisting rented homes as apartments and boarding rooms are allowed. Based on this analysis staff cannot recommend this request for URA designation be approved. Since the applicant believes they have met one of the two required conditions staff is also analyzing the optional conditions. The applicant has selected the following optional conditions: "Brick Construction or Similar Masonry Material and Landscaping Beyond 3 Required." Staff has analyzed the request with respect to these optional conditions. The analysis of these conditions follows. Optional Conditions Under the optional requirements of the Multiple Family Residential Matrix these are the two options selected by the Applicant: - Brick Construction or Similar Masonry Material: 100% of the street face and 50% of the sides of the structure shall be masonry material; and - Landscaping Beyond Required-Landscaping improvements installed at 150% of the required landscaping standard or greater. The applicant has an approved site plan and has designed the apartment building with brick construction on 100% of the street face and 50% on the sides of the structure. The landscaping requirement of 150% of the required is exceeded, as the landscaping provided is 278% of the required under the current zoning ordinance. The landscaping requirement under the proposed zoning ordinance is 1 landscaping unit for every 30 feet of frontage along a public street. This property would be required to have 3.2 units of landscaping. The design has the following landscaping units- 5 over story trees 5 units 42 shrubs 8 units 2 under story trees 1 units Total landscaping 14 units The landscaping exceeds the proposed zoning ordinance landscaping requirements by 438%. Based on this analysis it is staffs' conclusion that this request meets the optional conditions of"Brick Construction or Similar Masonry Material and Landscaping Beyond Required". STAFF CONCLUSIONS: City staff has determined that the applicant has not met the required Underutilized Condition (Properties that are non-conforming with respect to the base zone must be brought into conformance) criteria for the Multiple Family Residential Matrix. Staff has determined that the project does meet the optional condition (Brick Construction or Similar Masonry Material and Landscaping Beyond Required). City Council must understand that BOTH the Required and Optional conditions must be met for the URA request to be approved. It is staffs belief that the request does not meet the required condition therefore staff cannot recommend that this request be 4 approved. Further, the proposal should not be allowed to proceed to the next step in the process, which would be to set a date of public hearing for the approval of the Request for Designation of Urban Revitalization Area for 150 Campus Avenue. ALTERNATIVES: 1. The City Council can determine that the Request for Designation of Urban Revitalization Area for 150 Campus Avenue does not meet the criteria for eligibility. 2. The City Council can direct that the staff revise the Multiple Family Residential Matrix criteria where the revisions would enable the property at 150 Campus Avenue to be designated as a Urban Revitalization Area. 3. The City Council can refer this request back to staff for additional information. MANAGER'S RECOMMENDED ACTION: Staff has determined that the project does meet the optional condition (Brick Construction or Similar Masonry Material and Landscaping Beyond Required) of the Multiple Family Residential Matrix. City staff has determined that the applicant has not met the required Underutilized Condition (Properties that are non-conforming with respect to the base zone must be brought into conformance) criteria for the Multiple Family Residential Matrix. Since it is essential that the applicant meet both the required and the optional conditions it is the recommendation of the City Manager that the City Council adopt Alternative #1. This action will deny the Request for Designation of Urban Revitalization Area for 150 Campus Avenue on the basis of the project not meeting the required condition set forth in the Urban Revitalization Multiple Family Residential Criteria Matrix. COUNCIL ACTION: 5